Just recently I read an article by Duct Tape Marketing. Their summation below is an excellent overview of the key elements to successfully bill for the value you create for your clients/customers. We all know there is only so many hours in a day so hourly billing has it’s limits.
The keys to embracing value based pricing
Understand that price is a function of perceived value – increase your or your product’s perceived value and you can increase the price. This is why best-selling authors can charge much more for speaking fees and why Apple can charge more for a phone.
You must have a clear point of differentiation – Your methodology, point of view, feature set, delivery, packaging, experience, training, design, etc. must set you so far apart from others that there is no way in which a prospect would consider using price as the lone comparison tool.
You must measure results – Once you start to appreciate that the work you do delivers tens of thousands or hundreds of thousands of dollars in results to a client, you’ll get much more open about value based pricing. You must measure and review with your clients the actual results they get from working with you so that you can confidently begin to price and sell your work based on this knowledge and proof.
Edward Valaitis, CBI – The Certified Business Intermediary designation is your assurance of the highest level of training, expertise and integrity in the business intermediary profession. Mr. Valaitis has more than 25 years of experience building, managing, and leading commercial lending, CPA and consulting firms. Merger, Acquisition and business broker services provided throughout Florida. 800.975.2114 www.EdisonAvenue.com Serving markets including Tampa, Sarasota, St. Petersburg, Clearwater, Orlando, Tallahassee, Pensacola, Panama City, Fort Walton Beach and Destin, Florida.